ROAS Calculator

Calculate return on ad spend (ROAS), your break-even ROAS and the profit left after advertising.

What is the ROAS Calculator?

ROAS is the revenue generated for every rupee spent on advertising.

How does it work?

ROAS = revenue ÷ ad spend. Break-even ROAS = 1 ÷ gross margin, the ROAS at which gross profit exactly pays for the ads.

Formula

ROAS = Revenue ÷ Ad spend
Break-even ROAS = 100 ÷ Margin%

Example

₹50,000 on ads bringing ₹2 lakh in sales is a 4× ROAS. At a 40% margin, break-even ROAS is 2.5×, and profit after ads is ₹30,000.

Frequently asked questions

Is a 3× ROAS good?

Only if it is above your break-even ROAS. A business with 25% margins needs at least 4× to make money on ads.

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